Now Reading: Forex reserves jump $14.14 billion to $707 billion
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Forex reserves jump $14.14 billion to $707 billion
India's foreign exchange reserves surged by $14.14 billion to $707 billion for the week ended August 7, marking one of the biggest weekly expansions, the Reserve Bank said on Friday. Foreign currency…
The Story in Brief
India's foreign exchange reserves surged by $14.14 billion to $707 billion for the week ended August 7, marking one of the biggest weekly expansions, the Reserve Bank said on Friday. Foreign currency assets rose $9.95 billion to $574.62 billion, while gold reserves climbed $3.99 billion to $108.74 billion. Special drawing rights increased $79 million to $18.74 billion, and the IMF reserve position rose $116 million to $4.89 billion.
The RBI and government launched measures in July, including the FCNR(B) scheme, which has drawn reported inflows of $40 billion. The reserves had hit an all-time high of $728.49 billion in February before falling due to the Middle East conflict and RBI dollar sales to defend the rupee.
The Indian Opinion
The $14 billion weekly jump in forex reserves cheers markets, but narratives about 'unstoppable strength' ignore context. This is recovery from February's peak of $728 billion, not new territory. The FCNR(B) scheme's hot money can exit quickly if the rupee wobbles. The real test is whether India can sustain reserves above $700 billion without relying on short-term deposits. What will the number look like after the next global rate move?
Sources (2): rediff.com, thehindu.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
